EAA/ANN AirVenture Innovation Preview

Warns Carbon Scheme Will Bring Retaliatory Action

India, one of almost two dozen nations gearing up for a fight
with Europe over the imminent launch of a unilateral carbon
licensing system, warns that the unilateral action by Europe could
lead to international retaliation. Official sources now say India
will decide on a formal policy sometime in February, according to a
report in The Economic Times of India.

Following a recent interministerial meeting which included
Indian government and airline officials, the Times quotes an
unnamed, high-level government official as warning, "The EU has
legislated without consulting the rest of the world and they might
have to face retaliatory measures from other countries of the
world. Therefore, they might have to reconsider whether their call
is worth taking."

The Indian government estimates the new taxes imposed by the EU
will cost India's airlines an additional four billion rupees per
year, equivalent to about $75 million US, and could rise further as
Indian carriers expand service in the future. While the new carbon
license fees officially start January 1, airlines won't receive
invoices until early 2013, so we'll hear plenty more on this
story.